The key to any high precision machining operation using a single or multi-fluted rotary tool is to achieve the lowest radial runout and axial deviation from the center line that is possible. Current spindle designs use a tapered device, a collect device or a straight device with a very close fit in an attempt to achieve the desired accuracy. Each of these arrangements require high precision parts relative to their tapers, clearances etc. These spindle designs retain the tool by: 1) a collect; 2) a draw bar which may be either threaded or of an automatic tool changer type; or, 3) threads and jam nuts. These designs have many pieces which results in the stacking up of tolerances/inaccuracies, there are problems with draw bar balancing, and there are high costs. These designs produce many points in the system with a potential for producing cumulative radial runout and axial deviation. They are, for example, the location of the spindle, the location of the tool holding device in the spindle and the location of the tool in the tool holding device.